Situational Capital for the Lower Middle Market

We fill a credit void by solving $1 - $10 million structured debt needs and other special situations requiring speed and certainty to close.

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Investment Criteria / Loan Structures

SG Credit Partners provides structured term loans tailored to a company’s capital needs. Solutions can come in the form of a senior term loan, second lien term loan, or combination of the two depending on the financing situation.

LOAN SIZES:  $1 - $10 million

TERM: 6 – 36 months

AMORTIZATION: Flexible structures around cash flow and liquidity.

INDUSTRIES: Agnostic

OWNERSHIP: Privately Held, Venture / Sponsor-Backed, Public Companies

GEOGRAPHY: U.S. Based Businesses

SECURITY AND STRUCTURE

Second Lien / Split-Lien: Capital need beyond what senior lender is willing to provide and unable to access traditional mezzanine capital and/or have shorter term capital needs requiring speed to close. We specialize in solving situational liquidity behind banks, asset based lenders (ABLs), factors, and other senior credit facility providers.

Senior Secured: Non bankable/asset light businesses that don’t fit other lenders’ credit criteria or bridge loan for quick closing.

One Stop (Bifurcated): Senior secured interest-only loan against current assets + second lien cash flow term loan, often a true timing need and flexibility of one lender preferred.

Credit Profiles / Loan Products

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STRUCTURED
CASH FLOW

Characteristics: Situational capital need for working capital/liquidity, growth capital, acquisition financing, and/or special situations.

Revenue: $20 – $100+ million

Proforma EBITDA: $1 – $5+ million

Underwriting: Focus on proforma free cash flow / liquidity for debt service and other assets / enterprise value as secondary source of repayment.

Structure: Second lien / split lien, senior secured, bifurcated.

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TECHNOLOGY / RECURRING REVENUE

Characteristics: Emerging growth technology companies seeking non dilutive capital.

Revenue: $3 – $10+ million recurring revenue

EBITDA: Clear path to profitability or sufficient liquidity reserves.

Underwriting: Focus on recurring revenue, liquidity, and enterprise value.

Structure: Second lien / split lien, senior secured, or bifurcated. We will often start senior secured and transition to second lien as the company grows and can obtain traditional bank financing.

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HIGH NET WORTH LIQUIDITY SOLUTIONS

Characteristics: Asset rich, cash poor entrepreneur in need of short term liquidity or a bridge loan, sensitive to dilution, speed to close required.

Underwriting: Sufficient net worth, dedicated collateral, and/or future liquidity event to support SGCP’s loan.

Structure: Flexible security positions around financing situation, cash flow, and available collateral.

Situations We Finance

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GROWTH CAPITAL

  • Execute on new sales opportunities
  • Extend runway to performance or liquidity milestones
  • Leverage equity rounds with non-dilutive capital
  • Alternative to traditional mezzanine capital
  • Alternative to traditional venture debt
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WORKING CAPITAL

  • Seasonality / Cyclicality
  • Additional availability / Liquidity cushion
  • Stretch pieces (airballs) for borrowing base shortfalls
  • Upfront working capital for contracts / POs
  • Over-advance paydowns
  • Vendor payments
  • Inventory availability

ACQUISITIONS

  • Platform and add-on / tuck-in acquisitions
  • Management / Shareholder buyouts
  • LBOs
  • Independent sponsor opportunities
  • Stretch pieces (airballs) outside of senior acquisition facility
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SPECIAL SITUATIONS

  • Asset rich, cash poor entrepreneur in need of liquidity
  • Bank-to-ABL / New senior lender
  • Bridge-to-equity
  • Refinancing / Lender paydowns
  • Bank workouts
  • Litigation settlement
  • Tax liability settlement
  • Turnaround (including DIPs and emergence financings)

Why SG Credit Partners?

Headquartered in Southern California, with offices in Portland, Boston and Atlanta, the SG Credit Partners team has provided in excess of $250 million to 150+ borrowers across a variety of industries.

SPEED & CERTAINTY TO CLOSE

Our small and nimble deal team, flat decision-making, and streamlined documentation allow us to close deals within 2-3 weeks on average

NON-DILUTIVE, MINIMAL COVENANTS

Our capital allows business owners to preserve and grow their equity.

TAILORED, FLEXIBLE SOLUTIONS

Amortizing and non-amortizing (interest-only) structures available based on credit profile.

ABILITY TO AMEND LOANS

We work in cooperation with senior lenders and communication is important to us. When situations arise during the term of our loan, we amend loans in advance of an issue.

ENTREPRENEURIAL & PROFESSIONAL DEAL TEAM

Experienced professionals from investment banking, commercial lending, private equity, venture capital, and BDCs that know how to think outside of the box and execute flawlessly.

PROVEN TRACK RECORD

200+ deals with private, sponsor/venture-backed, and public companies in partnership with commercial banks, asset based lenders, and alternative senior lenders.

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Copyright © 2019 SGCP. All rights reserved.

California loans are made pursuant to SG Credit Partners, Inc.'s California Department of Corporations Finance Lender License No. 60DBO-87290. Credit approval is subject to SG Credit Partners, Inc.'s credit standards, and actual terms (including actual loan amount) may vary by applicant. SG Credit Partners, Inc. requires certain supporting documentation with each new application. Complete disclosures of APR, fees, and payment terms are provided with each loan and are available from SG Credit Partners, Inc. at 23 Corporate Plaza, Suite 100, Newport Beach CA 92660, telephone 1-800-631-2423.